0646 GMT - Sumitomo Mitsui Banking Corp. turns relatively more bearish on the Indian rupee, especially for 1H, says Jeff Ng, head of Asia Macro Strategy. India's fundamentals have been less stellar compared with six months ago, he says in a research report, noting 3Q's GDP slowdown. Also, inflation eased to 5.22% in December from a peak of 6.21% two months ago, and some anecdotal reports show actual inflation is lower than reported, Ng says. This is providing RBI with some scope to cut rates, with hopes of a Feb. 7 cut rising, Ng adds. Ng raises his USD/INR end-1Q target to 87.00 from 85.80. USD/INR is little changed at 86.59. (ronnie.harui@wsj.com)
(END) Dow Jones Newswires
January 17, 2025 01:46 ET (06:46 GMT)
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